Updating post from Reddit.
Hey, we’re a young couple from London looking to buy a 3 bed property and rent out the rooms to tenants and wanted to know if there was a way without having to get a buy to let mortgage
Would you be the live in landlord? And they your lodgers?
If you live in the property as your main residence, then you’d be resident landlords, the tenants would be lodgers, and you’d not need to.
Alternatively, you can purchase a property, and then obtain permission from your mortgage lender after the fact. Though this isn’t a simple, get a mortgage, and then apply for permission a week later. Think months.
Thank you x
With some banks, a residential mortgage requires you to not rent out the majority of the rooms. So one landlord and one tenant is fine. A landlord and their child who stays in a different room with two tenants is also fine. But a 3 bed flat where you rent out two rooms won't be allowed. This was the case with my mortgage.
Buy to Let is for a property you do NOT live in.
Most normal mortgages will allow you to rent rooms out.
Home insurance will likely need to be different if you have lodgers.
If you are looking to buy a property and rent a room out, provided it is your main property and you are living there, most mortgage companies will be fine with this.
Under the Rent a Room Scheme this became quite popular, same with the Ukrainian Relocation work.
You would need to ensure that if you moved and/or circumstances changed that you informed your mortgage provider.
Don’t forget claim your lodgers tax free allowance while ya at it !!
Buy the house and rent the room to others as lodgers (not tenants). They will have no rights and you can ask them to leave anytime. Choose good housemates and claim your tax free income allowance for the first £6000 you make in income.
*7500
Sure. Use your cash.